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A rocket fired from Gaza hit a shopping centre in the Israeli city of Ashkelon today, injuring several people, police have said.

At least 14 people, including two young children, were hurt when the rocket hit the third floor of the building. Three were seriously hurt, and rescuers were continuing to search for casualties.

The blast came as the US president, George Bush, met Israeli leaders in Jerusalem to mark the 60th anniversary of the founding of the state of Israel.

Speaking in Jerusalem moments before the rocket strike, the Israeli prime minister, Ehud Olmert, said he was working for peace, including a truce with Hamas, but said Israel would hit back hard if rocket attacks continued.

“We will not be able to tolerate continuous attacks on innocent civilians,” he said. “We hope that we will not have to act against Hamas in other ways with the military power that Israel hasn’t yet started to use in a serious manner in order to stop it.”

Rockets are fired into Israel from Hamas-controlled Gaza on an almost daily basis into Israel.